Tensions between the US and Iran have eased with a temporary suspension of hostilities, confirmed by US Ambassador to the UN Mike Waltz. This pause in airstrikes aims to create room for diplomatic negotiations, as President Trump noted ongoing talks, albeit with some ambiguity from Iranian officials regarding direct dialogue. The situation in the Strait of Hormuz remains critical, with limited vessel traffic impacting global energy markets.

The decline in energy commodity prices, with Brent crude at approximately $88 and WTI at $82, has positively influenced market sentiment, particularly in Europe where indices like the DAX and Ibex 35 saw gains. However, the US markets displayed mixed results, driven by significant sell-offs in the semiconductor sector, notably affecting stocks like Nvidia and ASML. This disparity highlights the fragility of market recovery amid geopolitical uncertainties and sector-specific challenges.

As central banks prepare for upcoming meetings, the focus will remain on their monetary policy stances, which are expected to lean hawkish. Market professionals should monitor these developments closely, as they could influence investment strategies and sector allocations in the coming weeks.

Source: xtb.com